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YOWELL v. GRANITE OPERATING CO.

No. 07-17-00112-CV.

630 S.W.3d 566 (2021)

Tommy YOWELL; Gail Yowell; Harry Graff; El Tercio, LLC; and Casuarina Investments, LLC (d/b/a Lar Resources, LLC), Appellants v. GRANITE OPERATING COMPANY and Apache Corporation, and PAC Production Co.; Mesa Oil & Gas Corp.; and Cattalo, Ltd., Appellees and Granite Operating Company and Apache Corporation, Appellants v. Peyton Royalties, L.P.; Bailey Peyton, Individually and as Trustee of the George Bailey Peyton, IV 2007 Grantor Retained Annuity Trust No. 1; and Peyton Holdings Corp., Appellees.

Court of Appeals of Texas, Amarillo.

June 25, 2021.

Attorney(s) appearing for the Case

John Smithee , Amarillo, for Appellees El Tercio, LLC, Casuarina Investments, LLC, Yowell, Gail, Graff, Harry.

Thomas C. Riney , Amarillo, for Appellees Peyton Holdings Corporation, Peyton, Bailey.

John Smither , Thomas A. Zabel , Nancy H. Elliott , Houston, for Appellees PAC Production Company, Mesa Oil & Gas Corporation, Cattalo, Ltd.

Kerri L. Stampes , Dallas, Thomas C. Riney , Amarillo, for Appellee Peyton Royalties, L.P.

John Smithee , Joe W. Hayes , Amarillo, for Appellee Yowell, Tommy.

Adam T. Blanchard , Ryan D. Clinton , John A. "Jad" Davis , Austin, John Ben Blanchard , for Appellant Granite Operating Company.

John A. "Jad" Davis , Ryan D. Clinton , Austin, for Appellant Apache Corporation.

Before PIRTLE and PARKER and DOSS, JJ.

OPINION

In this case remanded from the Supreme Court of Texas, we must determine whether a reserved overriding royalty interest (ORRI) in a mineral lease may be reformed under section 5.043 of the Texas Property Code to comply with the rule against perpetuities (the Rule). We must also consider any grounds for...

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